David and Téa: 'They're Still in Love'

David Duchovny and Téa Leoni looked like the picture perfect family on June 14 as they frolicked on the Malibu beach with their two kids, smiling and playing in the water.

The couple has shown a united front – and no discord – since they announced their separation last fall after Duchovny voluntarily entered rehab for sex addiction. Sources tell PEOPLE the couple remains close for the sake of their children Madeline, 10, and Kyd, 7.

“Their relationship has really improved,” says a pal of Duchnovny, who stars in the Showtime series Californication. “They’re still in love. They very much care for each other and whatever happens they are working it out for the kids.”

Duchovny’s willingness to enter rehab was always in the spirit of saving his marriage, a source tells PEOPLE. “He’s doing his best to move forward with his life and career,” the source says.

The couple, married in 1997, have been spotted together more frequently in the past few months. From courtside seats with the kids at New York Knicks basketball games to family vacations, all signs point to making their relationship work.

“Their first priority through everything was staying close for their kids and making life as great as it can be for them,” says a source of the couple. “They’ll always be a family.”